FX.co ★ GBP/USD Analysis for 3rd March, 2022

GBP/USD lost its traction during the European trading hours following a recovery attempt above 1.3400 earlier in the day. Ahead of Russia-Ukraine talks and FOMC Chairman Powell's testimony, the souring market mood is helping the dollar gather strength against its rivals.

The static resistance that seems to have formed at 1.3430 stays intact and buyers are unlikely to show interest in the pair unless it manages to flip that level into support. On the downside, interim support is located at 1.3350 ahead of 1.3300 (psychological level) and 1.3270 (static level). A daily close below the latter could be taken as a strong bearish sign and open the door for an extended slide toward 1.3200 (psychological level).

On the flip side, 1.3450 (50-period SMA on the four-hour chart) and 1.3500 (psychological level, 100-period SMA, 200-period SMA) align as next hurdles above 1.3430.